New Legislative Efforts Aimed at Illicit Crypto Activities

The House of Representatives legislation would set up a government group across the Treasury, Justice Department, and Secret Service to prevent illegal activities.

What to know:

• U.S. Representatives Zach Nunn (R-Iowa) and Jim Himes (D-Conn.) have reintroduced the Financial Technology Protection Act on Thursday. This legislation aims to counter illicit finance in the digital asset sector and had previously passed the House but stalled in the Senate.
• The proposed bill suggests forming a governmental task force that involves law enforcement and crypto industry experts to address illicit financing.

The bill seeks to establish a collaborative working group that will include authorities from various government sectors, such as the Department of Justice, Financial Crimes Enforcement Network, and the Internal Revenue Service, among others.

“Digital assets are playing an increasingly vital role in the global financial system, necessitating a careful approach to security and innovation to ensure the U.S. maintains its leadership in this area,” stated Rashan Colbert, highlighting the importance of the initiative.

Legislative efforts to regulate and monitor illicit finances in cryptocurrency remain a top priority for lawmakers, especially as digital asset technologies continue to evolve.